Almost every other day I read an article telling me that owning Gold is dumb or that Gold is doomed as an investment.

These articles would be useful or insightful if they weren’t based on “analysis” that is either misleading or downright wrong.

To whit…

Gold has absolutely CRUSHED stocks since 2000. During this period we’ve had two of the biggest stock market bubbles in history. Yet Gold’s performance has made stocks’ performance look like a flat-line.

H/T Bill King.

———————————————————————–

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———————————————————————–

Put another way, Gold has demolished stocks during a period in which the Fed was printing money by the trillions of Dollars. The Fed and other Central Banks may want to boost stocks, but Gold is the biggest beneficiary from their insanity.

However, Gold’s long-term outperformance of stocks is even more incredible.

Most “analysis” of Gold as an investment runs back for 100 years or so. However, this analysis is deceptive as Gold was pegged to major currencies up until 1967.

Of course, the geniuses in the media overlook this little tidbit because once major countries began to de-peg their currencies from Gold in 1967, the precious metal has absolutely DEMOLISHED stocks in terms of performance.

H/T Bill King

Since 1967, Gold has risen 33 fold. The S&P 500 is up just 21 Fold. Had you ignored stocks completely and simply bought Gold you would be significantly RICHER.

If you’re an investor who wants to increase your wealth dramatically, then you NEED to take out a trial subscription to our paid premium investment newsletter Private Wealth Advisory.

Private Wealth Advisory is a WEEKLY investment newsletter with an incredible track record.

Last week we closed three more winners including gains of 36%, 69% and a whopping 118% bringing us to 67 straight winning trades.

And throughout the last 14 months, we’ve not closed a SINGLE loser.

In fact, I’m so confident in my ability to pick winning investments that I’ll give you 30 days to try out Private Wealth Advisory for just 98 CENTS

If you have not seen significant returns from Private Wealth Advisory during those 30 days, just drop us a line and we’ll cancel your subscription with no additional charges.

All the reports you download are yours to keep, free of charge.

To take out a $0.98, 30-day trial subscription to Private Wealth Advisory…

CLICK HERE NOW!

Best Regards

Graham Summers

Phoenix Capital Research

The Central Banks hate physical cash. So much so they there will likely try to ban it in the near future.

You see, almost all of the “wealth” in the financial system is digital in nature.

• The total currency (actual cash in the form of bills and coins) in the US financial system is a little over $1.36 trillion.

• When you include digital money sitting in short-term accounts and long-term accounts then you’re talking about roughly $10 trillion in “money” in the financial system.
• In contrast, the money in the US stock market (equity shares in publicly traded companies) is over $20 trillion in size.

• The US bond market (money that has been lent to corporations, municipal Governments, State Governments, and the Federal Government) is almost twice this at $38 trillion.

• Total Credit Market Instruments (mortgages, collateralized debt obligations, junk bonds, commercial paper and other digitally-based “money” that is based on debt) is even larger $58.7 trillion.

• Unregulated over the counter derivatives traded between the big banks and corporations is north of $220 trillion.

When looking over these data points, the first thing that jumps out at the viewer is that the vast bulk of “money” in the system is in the form of digital loans or credit (non-physical debt).

Put another way, actual physical money or cash (as in bills or coins you can hold in your hand) comprises less than 1% of the “money” in the financial system.

As far as the Central Banks are concerned, this is a good thing because if investors/depositors were ever to try and convert even a small portion of this “wealth” into actual physical bills, the system would implode (there simply is not enough actual cash).

Remember, the current financial system is based on debt. The benchmark for “risk free” money in this system is not actual cash but US Treasuries.

In this scenario, when the 2008 Crisis hit, one of the biggest problems for the Central Banks was to stop investors from fleeing digital wealth for the comfort of physical cash. Indeed, the actual “thing” that almost caused the financial system to collapse was when depositors attempted to pull $500 billion out of money market funds.

A money market fund takes investors’ cash and plunks it into short-term highly liquid debt and credit securities. These funds are meant to offer investors a return on their cash, while being extremely liquid (meaning investors can pull their money at any time).

This works great in theory… but when $500 billion in money was being pulled (roughly 24% of the entire market) in the span of four weeks, the truth of the financial system was quickly laid bare: that digital money is not in fact safe.

To use a metaphor, when the money market fund and commercial paper markets collapsed, the oil that kept the financial system working dried up. Almost immediately, the gears of the system began to grind to a halt.

When all of this happened, the global Central Banks realized that their worst nightmare could in fact become a reality: that if a significant percentage of investors/ depositors ever tried to convert their “wealth” into cash (particularly physical cash) the whole system would implode.

As a result of this, virtually every monetary action taken by the Fed since this time has been devoted to forcing investors away from cash and into risk assets. The most obvious move was to cut interest rates to 0.25%, rendering the return on cash to almost nothing.

However, in their own ways, the various QE programs and Operation Twist have all had similar aims: to force investors away from cash, particularly physical cash.

After all, if cash returns next to nothing, anyone who doesn’t want to lose their purchasing power is forced to seek higher yields in bonds or stocks.

The Fed’s economic models predicted that by doing this, the US economy would come roaring back. The only problem is that it hasn’t. In fact, by most metrics, the US economy has flat-lined for several years now, despite the Fed having held ZIRP for 5-6 years and engaged in three rounds of QE.

As a result of this… mainstream economists at CitiGroup, the German Council of Economic Experts, and bond managers at M&G have suggested doing away with cash entirely.

If you think this sounds like some kind of conspiracy theory, consider that France has a cash ban on any transaction over €1,000 Euros from using physical cash. Spain has a cash ban on transactions over €2,500. Uruguay has cash bans on transactions over $5,000. And on and on.

A cash ban will be coming to the US in the near future. Already, the big banks (the ones with the closest ties to the Federal Reserve) have begun turning away deposits OR charging them.

State Street Corp. , the Boston bank that manages assets for institutional investors, for the first time has begun charging some customers for large dollar deposits, people familiar with the matter said. J.P. Morgan Chase & Co., the nation’s largest bank by assets, has cut unwanted deposits by more than $150 billion this year, in part by charging fees…

And here’s another big “tell”…

“At some point you wonder whether there will be a shortage of financial institutions willing to take on these balances,” said Kelli Moll, head of Akin Gump Strauss Hauer & Feld LLP’s hedge-fund practice in New York, saying that where to hold cash has become an increasing topic of conversation as hedge funds are shown the door by longtime banking counterparties.

So where is the physical cash meant to go?

Jerome Schneider, head of Pacific Investment Management Co.’s short-term and funding desk, which advises corporate and institutional clients, said that as a result of the bank actions, he and his customers have discussed as cash alternatives boosting investments in U.S. Treasury bonds, ultrashort-duration bond funds and money-market funds.

When it comes to cash, Mr. Schneider said, “Clients have been put on warning.”

      Source: Wall Street Journal.

This is just the beginning. Indeed… we’ve uncovered a secret document outlining how the US Federal Reserve plans to incinerate savings.

We detail this paper and outline three investment strategies you can implement

right now to protect your capital from the Fed’s sinister plan in our Special Report

Survive the Fed’s War on Cash.

We are making 1,000 copies available for FREE the general public.

To pick up yours, swing by….

http://www.phoenixcapitalmarketing.com/cash.html

Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research

 

 

 

 

Yesterday we outlined that Central Banks’ War on Cash is about to go into Hyperdrive.

Today we’re discussing just the policies Central Banks are already working to implement to eviscerate savings.

Globally, over 50% of Government bonds currently yield 1% or less. These are bonds that are negative in real terms meaning they are trailing well below the rate of inflation.

Even more astounding is the fact that over $7 trillion in debt currently have negative yields in nominal terms, meaning the bond literally has a negative yield when it trades.

This means that when an investor buys these bonds, he or she pays the Government for the right to own. There is NO rate of return; by buying these bonds you are literally incinerating your capital. Large bond funds that are required to own certain types of bonds have no choice but to lose money.

However, this is just the start.

———————————————————————————

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Our options service THE CRISIS TRADER is absolutely KILLING it.

We have a success rate of 72% meaning we make money on more than seven out of 10 trades.

Even if you include ALL of our losers, we finished 2015 UP 35%

Over the same time period, the S&P 500 was DOWN.

This continues this year. Already we’ve closed out FIVE double digit winners in 2016. Including a 43% gain closed within 24 hours of us opening it!

Our next trade goes out this morning… you can get it and THREE others for just 99 cents.

To take out a $0.99, 30 day trial subscription to THE CRISIS TRADER...

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———————————————————————————

Back in 1999, the Fed published a paper suggesting the implementation of a “carry tax” or taxing actual physical cash using an expiration date if depositors aren’t willing to spend the money.

The paper, written 16 years ago, suggested that if the Fed were to find that zero interest rates didn’t induce economic growth, it could try one of three things:

1)   Buy assets (QE)

2)   Money transfers (literally HAND OUT money through various vehicles)

3)   A carry tax (meaning tax the value of actual physical cash that is taken out of the system)

We’ve already seen six years of ZIRP and $3 trillion in QE. Next up are outright money transfers and a carry tax on physical cash.

What is a “carry tax”?

The idea here is that since it costs relatively little to store physical cash (the cost of buying a safe), the Fed should be permitted to “tax” physical cash to force cash holders to spend it (put it back into the banking system) or invest it.

The way this would work is that the cash would have some kind of magnetic strip that would record the date that it was withdrawn. Whenever the bill was finally deposited in a bank again, the receiving bank would use this data to deduct a certain percentage of the bill’s value as a “tax” for holding it.

For instance, if the rate was 5% per month and you took out a $100 bill for two months and then deposited it, the receiving bank would only register the bill as being worth $90.25 ($100* 0.95=$95 or the first month, and then $95 *0.95= $90.25 for the second month).

It sounds like absolute insanity, but I can assure you that Central Banks take these sorts of proposals very seriously.  QE sounded completely insane back in 1999 and we’ve already seen three rounds of it amounting to over $3 trillion.

No one would have believed the Fed could get away with printing $3 trillion for QE in 1999, but it has happened already. And given that it has failed to boost consumer spending/ economic growth, I wouldn’t at all surprised to see the Fed float one of the other ideas in the coming months.

The time to take action is now!

If you’re an investor who wants to increase your wealth dramatically, then you NEED to take out a trial subscription to our paid premium investment newsletter Private Wealth Advisory.

Private Wealth Advisory is a WEEKLY investment newsletter with an incredible track record.

Yesterday we closed out THREE more double digit winners (all of them opened just two weeks ago) bringing our current winning streak to 74 straight winning trades,

And throughout the last 14 months, we’ve not closed a SINGLE loser.

With a track record like this, we’re getting a LOT of attention, so we’re going to be raising the price of a Private Wealth Advisory in the next few weeks.

However, you can try it right now for 30 days for just 98 cents… but you better move fast, because these slots are selling out!!!

To lock in a $0.98, 30-day trial subscription to Private Wealth Advisory…

CLICK HERE NOW!

Best Regards

Graham Summers

Phoenix Capital Research

The global Central Banks have declared War on Cash.

Historically, one of the safest things to do when the markets begin to collapse is to move a significant portion of your holdings to cash. As the old adage says, during times of deflation, “cash is king.”

The notion here is that cash is a safe haven. And while earning 1-2% in interest doesn’t do much in terms of growing your wealth, it sure beats losing 20%+ by holding on to stocks or bonds during their respective bear markets

However, in today’s world of fiat-based Central Planning, cash represents a REAL problem for the Central Banks.

The reason for this concerns the actual structure of the financial system. As I’ve outlined previously, that structure is as follows:

• The total currency (actual cash in the form of bills and coins) in the US financial system is a little over $1.36 trillion.

• When you include digital money sitting in short-term accounts and long-term accounts then you’re talking about roughly $10 trillion in “money” in the financial system.
• In contrast, the money in the US stock market (equity shares in publicly traded companies) is over $20 trillion in size.

• The US bond market (money that has been lent to corporations, municipal Governments, State Governments, and the Federal Government) is almost twice this at $38 trillion.

• Total Credit Market Instruments (mortgages, collateralized debt obligations, junk bonds, commercial paper and other digitally-based “money” that is based on debt) is even larger $58.7 trillion.

• Unregulated over the counter derivatives traded between the big banks and corporations is north of $220 trillion.

When looking over these data points, the first thing that jumps out at the viewer is that the vast bulk of “money” in the system is in the form of digital loans or credit (non-physical debt).

———————————————————————————

The Single Best Options Trading Service on the Planet

Our options service THE CRISIS TRADER is absolutely KILLING it.

We have a success rate of 72% meaning we make money on more than seven out of 10 trades.

Even if you include ALL of our losers, we finished 2015 UP 35%

Over the same time period, the S&P 500 was DOWN.

This continues this year. Already we’ve closed out FIVE double digit winners in 2016. Including a 43% gain closed within 24 hours of us opening it!

Our next trade goes out this morning… you can get it and THREE others for just 99 cents.

To take out a $0.99, 30 day trial subscription to THE CRISIS TRADER...

CLICK HERE NOW!!!

———————————————————————————

Put another way, actual physical money or cash (as in bills or coins you can hold in your hand) comprises less than 1% of the “money” in the financial system.

Here is the financial system in picture form. I’m not including hard assets such as gold, real estate, or the like. We’re only talking about relatively liquid financial assets items that can be sold (turned into cash) quickly.

Of course, Wall Street will argue that the derivatives market is notional in value (meaning very little of this is actually “at risk”). However, even if we remove derivatives from the mix, the system is still very clearly based on credit, with only a small sliver of actual physical cash outstanding:

Put simply, the vast majority of wealth in the US is in fact digital wealth that moves from bank to bank without ever being converted into actual physical cash.

As far as the Central Banks are concerned, this is a good thing because if investors/depositors were ever to try and convert even a small portion of this “wealth” into actual physical bills, the system would implode (there simply is not enough actual cash).

Remember, the current financial system is based on debt. The benchmark for “risk free” money in this system is not actual cash but US Treasuries.

In this scenario, when the 2008 Crisis hit, one of the biggest problems for the Central Banks was to stop investors from fleeing digital wealth for the comfort of physical cash. Indeed, the actual “thing” that almost caused the financial system to collapse was when depositors attempted to pull $500 billion out of money market funds.

A money market fund takes investors’ cash and plunks it into short-term highly liquid debt and credit securities. These funds are meant to offer investors a return on their cash, while being extremely liquid (meaning investors can pull their money at any time).

This works great in theory… but when $500 billion in money was being pulled (roughly 24% of the entire market) in the span of four weeks, the truth of the financial system was quickly laid bare: that digital money is not in fact safe.

To use a metaphor, when the money market fund and commercial paper markets collapsed, the oil that kept the financial system working dried up. Almost immediately, the gears of the system began to grind to a halt.

When all of this happened, the global Central Banks realized that their worst nightmare could in fact become a reality: that if a significant percentage of investors/ depositors ever tried to convert their “wealth” into cash (particularly physical cash) the whole system would implode.

As a result of this, virtually every monetary action taken by the Fed since this time has been devoted to forcing investors away from cash and into risk assets. The most obvious move was to cut interest rates to 0.25%, rendering the return on cash to almost nothing.

However, in their own ways, the various QE programs and Operation Twist have all had similar aims: to force investors away from cash, particularly physical cash.

After all, if cash returns next to nothing, anyone who doesn’t want to lose their purchasing power is forced to seek higher yields in bonds or stocks.

The Fed’s economic models predicted that by doing this, the US economy would come roaring back. The only problem is that it hasn’t. In fact, by most metrics, the US economy has flat-lined for several years now, despite the Fed having held ZIRP for 5-6 years and engaged in three rounds of QE.

Let me put this very bluntly. The Fed and other Central Banks literally took the nuclear option in dealing with the 2008 bust. They have done everything they can to trash cash and force investors/ depositors into risk assets. But these polices have failed to generate growth.

Rather than admit they are completely wrong, Central Banks are reverting to more and more extreme measures to destroy cash and force investors to move into risk against their will.

Over 20% of global GDP is currently sporting NEGATIVE yields on their bonds.

This is just the start of a much larger strategy of declaring War on Cash.

If you’re an investor who wants to increase your wealth dramatically, then you NEED to take out a trial subscription to our paid premium investment newsletter Private Wealth Advisory.

Private Wealth Advisory is a WEEKLY investment newsletter with an incredible track record.

Yesterday we closed out THREE more double digit winners (all of them opened just two weeks ago) bringing our current winning streak to 74 straight winning trades,

And throughout the last 14 months, we’ve not closed a SINGLE loser.

With a track record like this, we’re getting a LOT of attention, so we’re going to be raising the price of a Private Wealth Advisory in the next few weeks.

However, you can try it right now for 30 days for just 98 cents… but you better move fast, because these slots are selling out!!!

To lock in a $0.98, 30-day trial subscription to Private Wealth Advisory…

CLICK HERE NOW!

Best Regards

Graham Summers

Phoenix Capital Research

One of the most critical lines to watch is the 12-month moving average for stocks.

Historically this line has served well as a proxy for determining if stocks were in a bull or bear market. When stocks rallied above this line, they were in a bull market. When they fell below this line, they were in a bear market.

As you can see, this line was a great metric for targeting when to enter or exit the markets.

———————————————————————–

The Single Best Options Trading Service on the Planet

Our options service THE CRISIS TRADER is absolutely KILLING it.

We have a success rate of 72% meaning we make money on more than seven out of 10 trades.

Even if you include ALL of our losers, we finished 2015 UP 35%

Over the same time period, the S&P 500 was DOWN.

This continues this year. Already we’ve closed out FIVE double digit winners in 2016. Including a 43% gain closed within 24 hours of us opening it!

Our next trade goes out this morning… you can get it and THREE others for just 99 cents.

To take out a $0.99, 30 day trial subscription to THE CRISIS TRADER...

CLICK HERE NOW!!!

———————————————————————–

The significance of this line was somewhat obscured by Fed policy post-2009. Put simply, anytime stocks broke below the critical 12-month moving average, the Fed unveiled a new monetary program to reignite the bull market.

However, starting in 2011, the Fed got its wish (a long-term bull market) by convincing enough investors that whenever stocks collapsed into dangerous territory, the Fed would stop in. From that point onward, stocks stayed above the 12-month moving average.

Until today.

The China Yuan devaluation in August 2015 triggered a sharp sell-off for stocks that took us below the 12-month moving average. The bulls tried desperately to reclaim this line in October-December but have failed.

On top of this, the Fed is now tightening rates. And with a US Presidential election only nine months away, the Fed’s hands are tied regarding another QE program (the fact the Fed’s policies have increased wealth inequality has become a campaign issue).

Which means… stocks have very likely just entered a bear market. Few investors have caught on to this yet, but when they do, there will be a selling panic, possibly even a CRASH.

Prepare now!

If you’re an investor who wants to increase your wealth dramatically, then you NEED to take out a trial subscription to our paid premium investment newsletter Private Wealth Advisory.

Private Wealth Advisory is a WEEKLY investment newsletter with an incredible track record.

Yesterday we closed out THREE more double digit winners (all of them opened just two weeks ago) bringing our current winning streak to 75 straight winning trades,

And throughout the last 14 months, we’ve not closed a SINGLE loser.

With a track record like this, we’re getting a LOT of attention, so we’re going to be raising the price of a Private Wealth Advisory in the next few weeks.

However, you can try it right now for 30 days for just 98 cents… but you better move fast, because these slots are selling out!!!

To lock in a $0.98, 30-day trial subscription to Private Wealth Advisory…

CLICK HERE NOW!

Best Regards

Graham Summers

Phoenix Capital Research

 

 

 

 

 

 

 

Yesterday we outlined that Central Banks’ War on Cash is about to go into Hyperdrive.

Today we’re discussing just the policies Central Banks are already working to implement to eviscerate savings.

Globally, over 50% of Government bonds currently yield 1% or less. These are bonds that are negative in real terms meaning they are trailing well below the rate of inflation.

Even more astounding is the fact that over $7 trillion in debt currently have negative yields in nominal terms, meaning the bond literally has a negative yield when it trades.

This means that when an investor buys these bonds, he or she pays the Government for the right to own. There is NO rate of return; by buying these bonds you are literally incinerating your capital. Large bond funds that are required to own certain types of bonds have no choice but to lose money.

However, this is just the start.

———————————————————————————

The Single Best Options Trading Service on the Planet

Our options service THE CRISIS TRADER is absolutely KILLING it.

We have a success rate of 72% meaning we make money on more than seven out of 10 trades.

Even if you include ALL of our losers, we finished 2015 UP 35%

Over the same time period, the S&P 500 was DOWN.

This continues this year. Already we’ve closed out FIVE double digit winners in 2016. Including a 43% gain closed within 24 hours of us opening it!

Our next trade goes out this morning… you can get it and THREE others for just 99 cents.

To take out a $0.99, 30 day trial subscription to THE CRISIS TRADER...

CLICK HERE NOW!!!

———————————————————————————

Back in 1999, the Fed published a paper suggesting the implementation of a “carry tax” or taxing actual physical cash using an expiration date if depositors aren’t willing to spend the money.

The paper, written 16 years ago, suggested that if the Fed were to find that zero interest rates didn’t induce economic growth, it could try one of three things:

1)   Buy assets (QE)

2)   Money transfers (literally HAND OUT money through various vehicles)

3)   A carry tax (meaning tax the value of actual physical cash that is taken out of the system)

We’ve already seen six years of ZIRP and $3 trillion in QE. Next up are outright money transfers and a carry tax on physical cash.

What is a “carry tax”?

The idea here is that since it costs relatively little to store physical cash (the cost of buying a safe), the Fed should be permitted to “tax” physical cash to force cash holders to spend it (put it back into the banking system) or invest it.

The way this would work is that the cash would have some kind of magnetic strip that would record the date that it was withdrawn. Whenever the bill was finally deposited in a bank again, the receiving bank would use this data to deduct a certain percentage of the bill’s value as a “tax” for holding it.

For instance, if the rate was 5% per month and you took out a $100 bill for two months and then deposited it, the receiving bank would only register the bill as being worth $90.25 ($100* 0.95=$95 or the first month, and then $95 *0.95= $90.25 for the second month).

It sounds like absolute insanity, but I can assure you that Central Banks take these sorts of proposals very seriously.  QE sounded completely insane back in 1999 and we’ve already seen three rounds of it amounting to over $3 trillion.

No one would have believed the Fed could get away with printing $3 trillion for QE in 1999, but it has happened already. And given that it has failed to boost consumer spending/ economic growth, I wouldn’t at all surprised to see the Fed float one of the other ideas in the coming months.

The time to take action is now!

If you’re an investor who wants to increase your wealth dramatically, then you NEED to take out a trial subscription to our paid premium investment newsletter Private Wealth Advisory.

Private Wealth Advisory is a WEEKLY investment newsletter with an incredible track record.

Yesterday we closed out THREE more double digit winners (all of them opened just two weeks ago) bringing our current winning streak to 74 straight winning trades,

And throughout the last 14 months, we’ve not closed a SINGLE loser.

With a track record like this, we’re getting a LOT of attention, so we’re going to be raising the price of a Private Wealth Advisory in the next few weeks.

However, you can try it right now for 30 days for just 98 cents… but you better move fast, because these slots are selling out!!!

To lock in a $0.98, 30-day trial subscription to Private Wealth Advisory…

CLICK HERE NOW!

Best Regards

Graham Summers

Phoenix Capital Research

 

The global Central Banks have declared War on Cash.

Historically, one of the safest things to do when the markets begin to collapse is to move a significant portion of your holdings to cash. As the old adage says, during times of deflation, “cash is king.”

The notion here is that cash is a safe haven. And while earning 1-2% in interest doesn’t do much in terms of growing your wealth, it sure beats losing 20%+ by holding on to stocks or bonds during their respective bear markets

However, in today’s world of fiat-based Central Planning, cash represents a REAL problem for the Central Banks.

The reason for this concerns the actual structure of the financial system. As I’ve outlined previously, that structure is as follows:

• The total currency (actual cash in the form of bills and coins) in the US financial system is a little over $1.36 trillion.

• When you include digital money sitting in short-term accounts and long-term accounts then you’re talking about roughly $10 trillion in “money” in the financial system.
• In contrast, the money in the US stock market (equity shares in publicly traded companies) is over $20 trillion in size.

• The US bond market (money that has been lent to corporations, municipal Governments, State Governments, and the Federal Government) is almost twice this at $38 trillion.

• Total Credit Market Instruments (mortgages, collateralized debt obligations, junk bonds, commercial paper and other digitally-based “money” that is based on debt) is even larger $58.7 trillion.

• Unregulated over the counter derivatives traded between the big banks and corporations is north of $220 trillion.

When looking over these data points, the first thing that jumps out at the viewer is that the vast bulk of “money” in the system is in the form of digital loans or credit (non-physical debt).

———————————————————————————

The Single Best Options Trading Service on the Planet

Our options service THE CRISIS TRADER is absolutely KILLING it.

We have a success rate of 72% meaning we make money on more than seven out of 10 trades.

Even if you include ALL of our losers, we finished 2015 UP 35%

Over the same time period, the S&P 500 was DOWN.

This continues this year. Already we’ve closed out FIVE double digit winners in 2016. Including a 43% gain closed within 24 hours of us opening it!

Our next trade goes out this morning… you can get it and THREE others for just 99 cents.

To take out a $0.99, 30 day trial subscription to THE CRISIS TRADER...

CLICK HERE NOW!!!

———————————————————————————

Put another way, actual physical money or cash (as in bills or coins you can hold in your hand) comprises less than 1% of the “money” in the financial system.

Here is the financial system in picture form. I’m not including hard assets such as gold, real estate, or the like. We’re only talking about relatively liquid financial assets items that can be sold (turned into cash) quickly.

Of course, Wall Street will argue that the derivatives market is notional in value (meaning very little of this is actually “at risk”). However, even if we remove derivatives from the mix, the system is still very clearly based on credit, with only a small sliver of actual physical cash outstanding:

Put simply, the vast majority of wealth in the US is in fact digital wealth that moves from bank to bank without ever being converted into actual physical cash.

As far as the Central Banks are concerned, this is a good thing because if investors/depositors were ever to try and convert even a small portion of this “wealth” into actual physical bills, the system would implode (there simply is not enough actual cash).

Remember, the current financial system is based on debt. The benchmark for “risk free” money in this system is not actual cash but US Treasuries.

In this scenario, when the 2008 Crisis hit, one of the biggest problems for the Central Banks was to stop investors from fleeing digital wealth for the comfort of physical cash. Indeed, the actual “thing” that almost caused the financial system to collapse was when depositors attempted to pull $500 billion out of money market funds.

A money market fund takes investors’ cash and plunks it into short-term highly liquid debt and credit securities. These funds are meant to offer investors a return on their cash, while being extremely liquid (meaning investors can pull their money at any time).

This works great in theory… but when $500 billion in money was being pulled (roughly 24% of the entire market) in the span of four weeks, the truth of the financial system was quickly laid bare: that digital money is not in fact safe.

To use a metaphor, when the money market fund and commercial paper markets collapsed, the oil that kept the financial system working dried up. Almost immediately, the gears of the system began to grind to a halt.

When all of this happened, the global Central Banks realized that their worst nightmare could in fact become a reality: that if a significant percentage of investors/ depositors ever tried to convert their “wealth” into cash (particularly physical cash) the whole system would implode.

As a result of this, virtually every monetary action taken by the Fed since this time has been devoted to forcing investors away from cash and into risk assets. The most obvious move was to cut interest rates to 0.25%, rendering the return on cash to almost nothing.

However, in their own ways, the various QE programs and Operation Twist have all had similar aims: to force investors away from cash, particularly physical cash.

After all, if cash returns next to nothing, anyone who doesn’t want to lose their purchasing power is forced to seek higher yields in bonds or stocks.

The Fed’s economic models predicted that by doing this, the US economy would come roaring back. The only problem is that it hasn’t. In fact, by most metrics, the US economy has flat-lined for several years now, despite the Fed having held ZIRP for 5-6 years and engaged in three rounds of QE.

Let me put this very bluntly. The Fed and other Central Banks literally took the nuclear option in dealing with the 2008 bust. They have done everything they can to trash cash and force investors/ depositors into risk assets. But these polices have failed to generate growth.

Rather than admit they are completely wrong, Central Banks are reverting to more and more extreme measures to destroy cash and force investors to move into risk against their will.

Over 20% of global GDP is currently sporting NEGATIVE yields on their bonds.

This is just the start of a much larger strategy of declaring War on Cash.

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Phoenix Capital Research

Almost every other day I read an article telling me that owning Gold is dumb or that Gold is doomed as an investment.

These articles would be useful or insightful if they weren’t based on “analysis” that is either misleading or downright wrong.

To whit…

Gold has absolutely CRUSHED stocks since 2000. During this period we’ve had two of the biggest stock market bubbles in history. Yet Gold’s performance has made stocks’ performance look like a flat-line.

 

H/T Bill King.

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Put another way, Gold has demolished stocks during a period in which the Fed was printing money by the trillions of Dollars. The Fed and other Central Banks may want to boost stocks, but Gold is the biggest beneficiary from their insanity.

However, Gold’s long-term outperformance of stocks is even more incredible.

Most “analysis” of Gold as an investment runs back for 100 years or so. However, this analysis is deceptive as Gold was pegged to major currencies up until 1967.

Of course, the geniuses in the media overlook this little tidbit because once major countries began to de-peg their currencies from Gold in 1967, the precious metal has absolutely DEMOLISHED stocks in terms of performance.

H/T Bill King

Since 1967, Gold has risen 33 fold. The S&P 500 is up just 21 Fold. Had you ignored stocks completely and simply bought Gold you would be significantly RICHER.

If you’re an investor who wants to increase your wealth dramatically, then you NEED to take out a trial subscription to our paid premium investment newsletter Private Wealth Advisory.

Private Wealth Advisory is a WEEKLY investment newsletter with an incredible track record.

Last week we closed three more winners including gains of 36%, 69% and a whopping 118% bringing us to 67 straight winning trades.

And throughout the last 14 months, we’ve not closed a SINGLE loser.

In fact, I’m so confident in my ability to pick winning investments that I’ll give you 30 days to try out Private Wealth Advisory for just 98 CENTS

If you have not seen significant returns from Private Wealth Advisory during those 30 days, just drop us a line and we’ll cancel your subscription with no additional charges.

All the reports you download are yours to keep, free of charge.

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Phoenix Capital Research

 

It would be a lot easier to be bullish today if the entire financial system wasn’t based on fraud and BS.

Every explanation we see regarding the bull market in stocks is really just a cover for the fact that Central Banks spent $14 trillion propping up the bond bubble.

All claims that stocks went up because of the “recovery” or because of “expansion” or whatever really translate to “stocks went up because TRILLIONS in liquidity went into the system and a lot of it ended up in stocks.”

Here’s the reality of things.

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Bonds, particularly sovereign bonds, are the bedrock of the financial system. US Treasuries are considered the “risk free” rate of return. Every other asset in the world is valued based on its perceived risk relative to Treasuries.

However, Treasuries have become horribly mispriced because the Fed and other Central Banks have tried to corner the global sovereign bond market.

When sovereign bonds are mispriced, EVERYTHING is mispriced. This includes US stocks, emerging market stocks, commodities, corporate bonds, municipal bonds, etc.

This worked for about five to six years until the dark economic realities that Central Banks attempted to paper over began to appear.

In this particular instance, the economic realities concerned the fact that China, which was thought to have pulled the world out of recession in 2009, (courtesy of trillions of Dollars in credit expansion), was in fact an enormous debt Ponzi scheme dressed up as a “miracle.”

Indeed, you can think of China as the poster child for the Keynesian believe that you can print your way to growth. The only way China pulled off the fraud for so long was by publishing fictitious economic numbers.

Speaking of which, as far back as 2007, current First Vice Premiere of China, Li Keqiang, admitted to the US ambassador to China that ALL Chinese data, outside of electricity consumption, railroad cargo, and bank lending is for “reference only.”

However, it took until 2014 for a critical mass of investors to discover this for themselves. When they did, economically sensitive commodities such as Oil and Copper imploded.

Indeed, looking at the chart, one could argue that the “recovery” ended in 2011. But it wasn’t really until 2014 or so that the economic realities of NO growth (particularly in China) became obvious and both commodities collapsed.

Anyone who claims that the carnage is isolated to Energy is not paying attention. We will repeat what we said earlier: when sovereign bonds are mispriced, EVERYTHING is mispriced. This includes US stocks, emerging market stocks, commodities, corporate bonds, municipal bonds, etc.

Oil and Copper are just the tip of the iceberg, Globally, the financial system is 30% more leveraged than it was in 2008. And this time around Central Banks have already used up 90%+ of their ammo papering over the 2008 mess.

Another Crisis is brewing…

If you’re an investor who wants to increase your wealth dramatically, then you NEED to take out a trial subscription to our paid premium investment newsletter Private Wealth Advisory.

Private Wealth Advisory is a WEEKLY investment newsletter with an incredible track record.

Last week we closed three more winners including gains of 36%, 69% and a whopping 118% bringing us to 67 straight winning trades.

And throughout the last 14 months, we’ve not closed a SINGLE loser.

In fact, I’m so confident in my ability to pick winning investments that I’ll give you 30 days to try out Private Wealth Advisory for just 98 CENTS

If you have not seen significant returns from Private Wealth Advisory during those 30 days, just drop us a line and we’ll cancel your subscription with no additional charges.

All the reports you download are yours to keep, free of charge.

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Best Regards

Graham Summers

Phoenix Capital Research

 

For over six years, the markets have been moving based on Central Banker actions and words.

The first phase (2009 to 2013) was dominated by action (ZIRP and QE).

The second phase (2013 to the present) was increasingly reliant on words (verbal intervention) as most Central Banks had by then used up 90% of their ammo.

As former Fed Chair Bernanke himself noted in his recent memoirs:

“Monetary policy is 98% talk and 2% action, especially when short term rates are near zero”

However, we are now reaching the point at which even actions AND words are losing their effect on the markets.

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Last Friday, the Bank of Japan introduced Negative Interest Rates or NIRP. The ensuing rally in the Nikkei lasted roughly 30 minutes before reversing all of its gains. It was only through concerted manipulation by the Bank of Japan that the Nikkei finished the day in the green.

Fast-forward to today, and the head of the Bank of Japan Haruhiko Kuroda is already promising to engage in even more NIRP if needed. He stressed there was “no limit” to monetary easing measures.

Yes, this took place only a few days later.

So… the Bank of Japan launches NIRP for the first time in its history. And within THREE trading days is already promising to do MORE, going so far as to say that it has “no limit” on what it will try.

This is what it looks like when a Central Bank loses control= total desperation.

Bear in mind, the Bank of Japan has been at the forefront for ALL monetary policy for decades. The US Federal Reserve launched its first QE program in 2008. The European Central Bank launched its first QE program in 2015.

The Bank of Japan first launched QE back in 2001.

In short, the Bank of Japan has two decades of experience with QE AND ZIRP. It has launched the single largest QE program in history (an amount equal to over 20% of Japan’s GDP). And it has expanded its balance sheet to over 65% of Japan’s GDP.

In short, the Bank of Japan has gone “all in” to attempt to reflate its financial system. It has completely failed. And now it is so desperate that it is promising to do even MORE only three days after its latest monetary surprise.

The End Game for Central Banks has officially begun.

Another Crisis is coming. Smart investors are preparing now.

If you’re an investor who wants to increase your wealth dramatically, then you NEED to take out a trial subscription to our paid premium investment newsletter Private Wealth Advisory.

Private Wealth Advisory is a WEEKLY investment newsletter with an incredible track record.

Last week we closed three more winners including gains of 36%, 69% and a whopping 118% bringing us to 65 straight winning trades.

And throughout the last 14 months, we’ve not closed a SINGLE loser.

In fact, I’m so confident in my ability to pick winning investments that I’ll give you 30 days to try out Private Wealth Advisory for just 98 CENTS

If you have not seen significant returns from Private Wealth Advisory during those 30 days, just drop us a line and we’ll cancel your subscription with no additional charges.

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Graham Summers

Phoenix Capital Research

 

The Fed Vice-Chair has begun laying the groundwork for NIRP.

The US Federal Reserve is obsessed with market reactions to its policies. Because of this, anytime the Fed plans to announce a major change in policy, it preps the markets via numerous leaks and hints… oftentimes for months in advance.

An excellent example of this concerns the Fed’s decision to taper QE back in 2013.

At that time, the Fed had been engaging in two open ended-QE programs… programs that had been running for over six months.

Rather than simply beginning to taper the programs, then-Fed Chairman Ben Bernanke, hinted that the Fed was contemplating a taper in June.

The markets reacted sharply with bond yields rising.

The Fed then spent six months allowing the market to get used to the idea of a taper, before the actual taper finally began in December 2013.

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Put another way, the Fed gave the markets a full six months to adjust to a change in policy, before actually implementing said change. This only highlights just how focused the Fed is on market reactions to its policies.

In the simplest of terms: the Fed will NEVER surprise the market. This is particularly true now that the Fed is in the political cross hairs due to ample evidence showing its policies have increased wealth inequality.

If the Fed is planning on something new, particularly something that might have political repercussions, we’ll see numerous hints and suggestions well before the actual policy is unveiled.

With that in mind, we need to consider that the Fed is now actively engaged in a campaign to prep the markets for Negative Interest Rate Policy or NIRP.

1. First we find that a Fed official hinted at NIRP during the Fed’s September 2015 meeting.

2. Then, in early October 2015, NY Fed President Bill Dudley stating that negative rates were “an option” though not a “relevant conversation” right now.

3. This statement was followed up by former Minneapolis Fed President Narayana Kocherlakota stating point blank that the Fed should “consider negative rates.”

Kocherlakota is a former Fed President and so is more aggressive with his campaign.

Fast forward to yesterday and…

4. Now Fed Vice-Chair Stanley Fischer stated in a Bloomberg interview that NIRP is working “more than I expected.”

Carefully note the word choice here. Fischer didn’t say he was “surprised” to see NIRP working; his phrasing implies that he “expected” NIRP to work. The surprise element is just how well it’s working.

It is one thing for Fed uber-doves or former Fed President to promote an extremely aggressive scheme; it’s entirely something else for the Fed VICE-CHAIR to do so.

Fischer is the current Vice-Chair for the Fed (formerly this position was held by Janet Yellen). As such, he is the most likely candidate for future Fed Chair when Yellen’s term ends in February 2018.

Previously, the Fed had never once hinted at or discussed NIRP during its policy meetings. Then, in the span of three weeks, an anonymous Fed official state that he or she believes NIRP is coming to the US, followed by two highly visible Presidents suggesting NIRP for consideration, and now the current Fed Vice Chair (and most likely candidate for future Fed Chair) has stated that NIRP is “working more than I expected.”

NIRP WILL BE COMING TO THE US.

This is simply part of the Fed’s larger War on Cash.

For six years straight, the Fed has been trying to “trash” cash.

First it cut interest rates to zero… making it so that savings deposits produced almost nothing in the way of interest income. Consider that at current rates, a retiree with $1 million in savings earns a measly $2,500 per year in interest income.

The Fed’s hope was that by making it painful for savers to sit in cash, said savers would move into risk assets such as bonds and stocks. This has worked in that stocks are now in one of, if not THE biggest bubbles in history… while bonds are trading at yields never before seen outside of wartime.

However, the Fed overlooked two outlets for investors who didn’t want to be forced into risk. They are: Gold bullion and physical cash.

The Fed has been dealing with bullion via clear manipulation of prices for years (that’s an article for another time). And now it is moving to make physical cash obsolete.

If you’re an investor who wants to increase your wealth dramatically, then you NEED to take out a trial subscription to our paid premium investment newsletter Private Wealth Advisory.

Private Wealth Advisory is a WEEKLY investment newsletter with an incredible track record.

Last week we closed three more winners including gains of 36%, 69% and a whopping 118% bringing us to 67 straight winning trades.

And throughout the last 14 months, we’ve not closed a SINGLE loser.

In fact, I’m so confident in my ability to pick winning investments that I’ll give you 30 days to try out Private Wealth Advisory for just 98 CENTS

If you have not seen significant returns from Private Wealth Advisory during those 30 days, just drop us a line and we’ll cancel your subscription with no additional charges.

All the reports you download are yours to keep, free of charge.

To take out a $0.98, 30-day trial subscription to Private Wealth Advisory…

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Best Regards

Graham Summers

Phoenix Capital Research

 

 

 

Something absolutely astounding has happened.

Two weeks ago, the head of the Bank of Japan, Haruhiko Kuroda stated that Japan has a “potential growth rate of 0.5% or lower.”

By way of context, remember that the Bank of Japan has been at the forefront for ALL monetary policy for decades. The US Federal Reserve launched its first QE program in 2008. The European Central Bank launched its first QE program in 2015. The Bank of Japan first launched QE back in 2001.

In short, the Bank of Japan has two decades of experience with QE. Indeed, Japan is responsible for the single largest QE program in history, its “Shock and Awe” program launched in April 2014 which equaled over 25% of Japan’s GDP.

Which is why when Kuroda admitted that Japan’s GDP growth “potential” is limited to 0.5% or lower, he was implicitly admitting that QE cannot generate growth.

Remember, Central Bankers speak in half measures. They NEVER admit failure directly. Their primary job is to maintain confidence in the financial system even if it entails lying.

In Central Banker speak, Haruhiko Kuroda has admitted that there is a limit to potential GDP growth regardless of how much QE and Central Bank employs. He has admitted that Central Bankers might not have the tools required to generate growth.

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Even more that this, his actions SUPPORT this claim.

Last Friday, the Bank of Japan announced that it would be implementing Negative Interest Rate Policy or NIRP.

This change in policy was incredible. But what’s even more incredible is the fact that the Bank of Japan did NOT increase its QE program when it announced NIRP.

Put another way, the head of the Bank of Japan announced that QE cannot generate GDP growth, and then DIDN’T increase the Bank of Japan’s QE program when it came time to announce a new policy.

In short, Haruhiko Kuroda’s actions are supporting his words.

This is the single most important development in the monetary world. The head of a MAJOR Central Bank announced that QE cannot create economic growth and then refused to increase his bank’s QE program.

As usual, the markets have yet to adjust. Eventually they will. When they do, the S&P 500 will be below its March 2009 lows.

Another Crisis is coming. Smart investors are preparing now.

If you’re an investor who wants to increase your wealth dramatically, then you NEED to take out a trial subscription to our paid premium investment newsletter Private Wealth Advisory.

Private Wealth Advisory is a WEEKLY investment newsletter with an incredible track record.

Last week we closed three more winners including gains of 36%, 69% and a whopping 118% bringing us to 65 straight winning trades.

And throughout the last 14 months, we’ve not closed a SINGLE loser.

In fact, I’m so confident in my ability to pick winning investments that I’ll give you 30 days to try out Private Wealth Advisory for just 98 CENTS

If you have not seen significant returns from Private Wealth Advisory during those 30 days, just drop us a line and we’ll cancel your subscription with no additional charges.

All the reports you download are yours to keep, free of charge.

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Best Regards

Graham Summers

Phoenix Capital Research

The stock rally of the last few days has investors wondering if the bottom is in.

Unfortunately, it very likely is not.

High Yield bonds have lead stocks to the upside. They are now leading to the downside, and the High Yield bond market indicates we have further to fall. The stock rally looks out of place here.

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If this is not compelling enough consider that the microcap index, the Russell 2000, which leads the S&P 500 indicates stocks have a LONG ways to fall. Hard for stocks to rally against this divergence.

Finally, consider that the S&P 500 has broken its bull market trendline going back to 2009 AND cut through critical support (green line) on a monthly basis. A significant stock rally does not seem to be in the cards.

Another Crisis is coming. Smart investors are preparing now.

If you’re an investor who wants to increase your wealth dramatically, then you NEED to take out a trial subscription to our paid premium investment newsletter Private Wealth Advisory.

Private Wealth Advisory is a WEEKLY investment newsletter with an incredible track record.

Last week we closed three more winners including gains of 36%, 69% and a whopping 118% bringing us to 65 straight winning trades.

And throughout the last 14 months, we’ve not closed a SINGLE loser.

In fact, I’m so confident in my ability to pick winning investments that I’ll give you 30 days to try out Private Wealth Advisory for just 98 CENTS

If you have not seen significant returns from Private Wealth Advisory during those 30 days, just drop us a line and we’ll cancel your subscription with no additional charges.

All the reports you download are yours to keep, free of charge.

To take out a $0.98, 30-day trial subscription to Private Wealth Advisory…

CLICK HERE NOW!

Best Regards

Graham Summers

Phoenix Capital Research

 

 

 

As we outlined last week, the bursting of the bond bubble has begun.

CNBC and the financial media may spend 99% of their time talking about stocks, but bonds are the single most important issue for Central Banks.

When you consider everything in the context of the bond bubble, every Central Bank policy begins to make sense.

• Central Banks cut interest rates to zero to make bond payments smaller.

• Central Banks launched QE and other programs to put a floor beneath bond prices (when bond prices rise, bond yields fall and debt payments become smaller and easier to service).

• Central Banks provided verbal intervention promising to do “more” or “whatever it takes” whenever bonds came close to ending their bull market.

None of these issues address what created the bond bubble in the first place. So global governments, corporations and others took advantage of low interest rates to issue… more debt.

In 2008 the bond bubble was $80 trillion in size. Today it’s $100 trillion. Put simply, the financial system is even more leveraged today than it was in 2008.

And the bond bubble just burst.

Today corporates are more leveraged than they were in 2007. Thus, the Bond Bubble not only encapsulates sovereign nations, but even individual companies. And now that bubble is bursting.

Companies have defaulted on $95bn worth of debt so far this year, with 2015 set to finish with the highest number of worldwide defaults since 2009, according to Standard & Poor’s.

The figures are the latest sign financial stress is beginning to rise for corporate borrowers, led by US oil and gas companies. The rising tide of defaults comes as investors reassess their exposure to companies that borrowed heavily in recent years against the backdrop of central bank policy suppressing interest rates…

Based on the number of defaults in the first three quarters of the year, S&P expects 109 defaults by year-end, the largest total since 268 borrowers ran into problems in 2009. There were only 60 defaults worldwide in 2014.

Source: Financial Times

The first sector to go belly up was energy, due to the collapse in Oil prices started mid-2014.

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However, as the below chart shows, this is much more than an Energy bust:

This wave of defaults be increasing as the global economy weakens. Year over Year corporate sales growth is already flatlining and trending down.

Energy is the worst performer from a sales perspective, but it is hardly alone. Materials, Industrials, Technology, and Utilities are all posting negative growth resulting in overall negative sales growth for the S&P 500. And we’ve reached the point that even financial engineering via buybacks is failing to mask the fact that profits are falling:

 

As a result of this, money is flowing out of corporate bonds, particularly junk bonds. Last year (2015) was the first year since 2009 that Junk Bonds finished DOWN for the year.

That bubble has now clearly burst.

This is just the beginning. The bond bubble will take months to completely implode. And eventually it will consume even sovereign nations.

If you’re an investor who wants to increase your wealth dramatically, then you NEED to take out a trial subscription to our paid premium investment newsletter Private Wealth Advisory.

Private Wealth Advisory is a WEEKLY investment newsletter with an incredible track record.

Last week we closed three more winners including gains of 36%, 69% and a whopping 118% bringing us to 65 straight winning trades.

And throughout the last 14 months, we’ve not closed a SINGLE loser.

In fact, I’m so confident in my ability to pick winning investments that I’ll give you 30 days to try out Private Wealth Advisory for just 98 CENTS

If you have not seen significant returns from Private Wealth Advisory during those 30 days, just drop us a line and we’ll cancel your subscription with no additional charges.

All the reports you download are yours to keep, free of charge.

To take out a $0.98, 30-day trial subscription to Private Wealth Advisory…

CLICK HERE NOW!

Best Regards

Graham Summers

Phoenix Capital Research